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Project Report: Application of Machine Learning

This document is a project report on applying machine learning techniques for customer churn prediction. It was submitted by Suraj Paliwal and Suresh Kumar to their professor Sangita Kumari. The report describes building models using techniques like KNN, linear regression, logistic regression, and decision trees on bank customer transaction and demographic data to predict which customers will close their accounts. It discusses the objectives, inputs, models created, and concludes that identifying churners is challenging due to data volume and quality but can be improved with parallelization and ensemble methods.

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Sameer Kumar
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187 views

Project Report: Application of Machine Learning

This document is a project report on applying machine learning techniques for customer churn prediction. It was submitted by Suraj Paliwal and Suresh Kumar to their professor Sangita Kumari. The report describes building models using techniques like KNN, linear regression, logistic regression, and decision trees on bank customer transaction and demographic data to predict which customers will close their accounts. It discusses the objectives, inputs, models created, and concludes that identifying churners is challenging due to data volume and quality but can be improved with parallelization and ensemble methods.

Uploaded by

Sameer Kumar
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Project Report

on

APPLICATION OF MACHINE LEARNING


(15/05/2020 – 30/06/2020)

Supervised By: Submitted By:


Sangita Kumari SURAJ PALIWAL(19UITE9017)
(Assistant Professor) SURESH KUMAR(19UITE9018)

Department of Computer Science & Engineering


MBM Engineering College,Jodhpur
Certificate

This is to certify that the minor project entitled “MACHINE LEARNING” submitted by “SURAJ
PALIWAL & SURESH KUMAR” in partial fulfillment of the requirement for the award of the
Internship/Training under the mentorship of teacher of Bachelor in Engineering (II rd year , IV th
Semester) in Department of “ Computer Science & Engineering ” from “ MBM ENGINEERING
COLLEGE,JODHPUR ” for session 2020-2021.

Ms. Sangita Kumari


(Assistant Professor)
MBM ENGINEERING COLLEGE,JODHPUR
ACKNOWLEDGEMENTS

We take immense pleasure in thanking Dr.Shrikant Ojha , Dean,Faculty of Engineering &


Architecture,Jodhpur for having permitted us to carry out this project work. We would like to
thank Dr. N.C BARWAR, HOD,Computer Science & Engineering Jodhpur for support and
facilities made available. We wish to express our deep sense of gratitude to Ms.Sangita Kumari
for her able guidance and useful suggestions, which helped us in completing the project work, in
time. Finally, yet most importantly, we would like to express our heartfelt thanks to our beloved
parents and family for their blessings, wishes and support for the successful completion of this
project.

SURAJ PALIWAL
SURESH KUMAR
CONTENTS

1.Introduction
1.1 Introduction to Maching Learning
1.2 Some Application of Machine learning
1.3 Concept/Topic of Machine learning

2. Specifications
2.1 Project Description
2.2 Project Objective
2.3 Project Input
2.4 Screen views
2.5 TechStack

3. Conclusion

4. References
INTRODUCTION

1.1 Introduction to Machine Learning


Machine learning is an application of artificial intelligence (AI) that provides systems the
ability to automatically learn and improve from experience without being explicitly
programmed. Machine learning focuses on the development of computer programs that
can access data and use it learn for themselves.
The process of learning begins with observations or data, such as examples, direct
experience, or instruction, in order to look for patterns in data and make better decisions
in the future based on the examples that we provide. The primary aim is to allow the
computers learn automatically without human intervention or assistance and adjust actions
accordingly.
1.2 Applications of Machine learning
Some more examples of tasks that are best solved by using a learning algorithm
• Recognizing patterns:
– Facial identities or facial expressions
– Handwritten or spoken words
– Medical images
• Generating patterns:
– Generating images or motion sequences
• Recognizing anomalies:
– Unusual credit card transactions
– Unusual patterns of sensor readings in a nuclear power plant
• Prediction:
– Future stock prices or currency exchange rates
– Customer Churn
1.3 Concept/Topic
The Project consisted of following topics
– Introduction to Machine Learning,
– Python for Machine Learning
– Machine Learning Life Cycle
– Data Exploration and Manipulation
– Build Your First Model
– Evaluation Metrics
– k-NN Alogrithm
– Selecting the Right Model
– Linear Regression
– Logistic Regression
– Decision Trees
– Feature Engineering
– Basics of Ensemble Models
– Random Forest
– Clustering modules

Specifications

2.1 Project Description


Project on Application of Maching Learning : Prediction
Customer Churn Prediction: A Bank wants to take care of customer retention for its
product: savings accounts. The bank wants you to identify customers likely to churn
balances below the minimum balance. You have the customers information such as age,
gender, demographics along with their transactions with the bank.

2.2 Project Objective


Your task as a data scientist would be to predict the propensity to churn for each customer.
2.3 Project Input
Data Dictionary( CSV Data File)
There are multiple variables in the dataset which can be cleanly divided into 3 categories:
I. Demographic information about customers
➢ customer_id - Customer id
➢ vintage - Vintage of the customer with the bank in a number of days
➢ age - Age of customer
➢ gender - Gender of customer
➢ dependents - Number of dependents
➢ occupation - Occupation of the customer
➢ city - City of the customer (anonymized)

II. Customer Bank Relationship


➢ customer_nw_category - Net worth of customer (3: Low 2: Medium 1: High)
➢ branch_code - Branch Code for a customer account
➢ days_since_last_transaction - No of Days Since Last Credit in Last 1 year
III. Transactional Information
➢ current_balance - Balance as of today
➢ previous_month_end_balance - End of Month Balance of previous month
➢ average_monthly_balance_prevQ - Average monthly balances (AMB) in Previous
Quarter
➢ average_monthly_balance_prevQ2 - Average monthly balances (AMB) in previous
to the previous quarter
➢ current_month_credit - Total Credit Amount current month
➢ previous_month_credit - Total Credit Amount previous month
➢ current_month_debit - Total Debit Amount current month
➢ previous_month_debit - Total Debit Amount previous month
➢ current_month_balance - Average Balance of current month
➢ previous_month_balance - Average Balance of previous month
➢ churn - Average balance of customer falls below minimum balance in the next
quarter (1/0)

2.4 Project TechStack


• Python using Jupyter Notebook
2.5 Project Screenshots
Conclusion

Churn prediction is a function that involves systematic analysis of customer data for identifying
and analyzing patterns and trends of customer loyalty and blend. The detected patterns and trends
can be used by telecommunication industries to improve customer relationship and at the same
time improve net profit. Identification of churners and non- churners is a time consuming and
critical task, that has to be performed carefully, as the future growth of the company relies on the
result of such an analysis.
This task is considered challenging because of two reasons
➢ customer information volume has increased
➢ The data available is inconsistent and are incomplete thus making the task of formal
analysis a difficult task.
Further, due to its vast size, investigation and analysis of customer database takes longer duration
due to the complexity of these issues. (Specifially in KNN Algorithm)
The following can be considered to improve the proposed customer loyalty assessment model and
actionable knowledge discovery system.
➢ The proposed models can be further enhanced, if the processes can be parallelizing.This
is feasible, by identifying operations that are independent to each other and propose a
parallel architecture to improve the performance.
➢ Classification process can be improved by using advanced techniques like ensemble
clustering or ensemble classification.

References
• https://www.javatpoint.com
• https://trainings.internshala.com
• Youtube

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